The Official Contempt for Alberta Thread
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Alberta and its oil royalty addiction
Alberta and its oil royalty addiction
It's no great secret that the ups and downs of Alberta's finances are tied to the price of energy. For better or for worse, the province has ridden that roller coaster for decades. Posting surpluses in times of plenty; running deficits when energy prices drop.
Alberta is about to record its worst year ever. In October, the province pegged the current year deficit at $6.1 billion, which, not coincidentally, is just about the exact drop in energy royalties for the year.
However that $6 billion figure is might be a little optimistic based on assumptions of $50 US a barrel for oil. For every $1 drop in the price of oil, the provincial coffers take a hit of $170 million.
Right through the end of 2015, most of the government price assumptions held up. WTI averaged US$48.60 per barrel in 2015 and the Canadian dollar averaged 78 cents US. The heavy/light oil differential came in a little better than expected, and natural gas prices were only slightly lower.
So far, 2016 has been a different story, with oil trading consistently under US$40 a barrel. The assumption for 2016/2017 was for the price of oil to average $61 a barrel, double from where crude is trading today.
Ron Kneebone, an economist with the University of Calgary's school of public policy, says the province will be lucky to hit $6 billion this year and will likely post a deficit of roughly $8 billion in 2016/2017.
Alberta and its oil royalty addiction - Edmonton - CBC News
Alberta and its oil royalty addiction
It's no great secret that the ups and downs of Alberta's finances are tied to the price of energy. For better or for worse, the province has ridden that roller coaster for decades. Posting surpluses in times of plenty; running deficits when energy prices drop.
Alberta is about to record its worst year ever. In October, the province pegged the current year deficit at $6.1 billion, which, not coincidentally, is just about the exact drop in energy royalties for the year.
However that $6 billion figure is might be a little optimistic based on assumptions of $50 US a barrel for oil. For every $1 drop in the price of oil, the provincial coffers take a hit of $170 million.
Right through the end of 2015, most of the government price assumptions held up. WTI averaged US$48.60 per barrel in 2015 and the Canadian dollar averaged 78 cents US. The heavy/light oil differential came in a little better than expected, and natural gas prices were only slightly lower.
So far, 2016 has been a different story, with oil trading consistently under US$40 a barrel. The assumption for 2016/2017 was for the price of oil to average $61 a barrel, double from where crude is trading today.
Ron Kneebone, an economist with the University of Calgary's school of public policy, says the province will be lucky to hit $6 billion this year and will likely post a deficit of roughly $8 billion in 2016/2017.
Alberta and its oil royalty addiction - Edmonton - CBC News
Re: Alberta and its oil royalty addiction
maybe we need to merge all your petty little daily anti-alberta oil, anti-alberta this 'n' that thread-spam into one smelly little container down in the members lounge away from newsbot eyes and such.
what to do, what to do...
maybe we need to merge all your petty little daily anti-alberta oil, anti-alberta this 'n' that thread-spam into one smelly little container down in the members lounge away from newsbot eyes and such.
what to do, what to do...
Re: Alberta and its oil royalty addiction
This 'addiction' is a national thing. Without oil, Canada would
be a very different place, as the country as a whole has
profited from this 'addiction.' Alberta is hurting right now, and
the rest of Canada will feel its pain when they try to suck more
cash (that just isn't there at this point) from Alberta.
This might force Quebec to eventually begin to try to
stand on its own two feet....
I know I've used these same two pics often lately, but I
feel like I'm posting them in the same thread that seems
to pop up over & over & over & over like a new thread
that keeps getting recycled as if it's new somehow....
This 'addiction' is a national thing. Without oil, Canada would
be a very different place, as the country as a whole has
profited from this 'addiction.' Alberta is hurting right now, and
the rest of Canada will feel its pain when they try to suck more
cash (that just isn't there at this point) from Alberta.
This might force Quebec to eventually begin to try to
stand on its own two feet....
I know I've used these same two pics often lately, but I
feel like I'm posting them in the same thread that seems
to pop up over & over & over & over like a new thread
that keeps getting recycled as if it's new somehow....
Re: Alberta and its oil royalty addiction
So the Brits didn't win the war after all.
Talk about having a free ride and then bitch about it so the trend can continue. Wow, a new low.
So the Brits didn't win the war after all.
Talk about having a free ride and then bitch about it so the trend can continue. Wow, a new low.
Re: Alberta and its oil royalty addiction
You ain't kidding...his medication hasn't taken effect yet...
Re: Alberta and its oil royalty addiction
Follow the money and it ends up going to the French speaking people, the ones that supposedly lost the war for who rules Canada. With them getting the 'cream' (or bulk of the money) by looking at the numbers. Be interesting to see just how they squander the 'gift'. #x what the US gifts to Israel and none of it has to be spent on self defense or civilian infrastructure. Clearly explains why the French have the global reputation that they do.
I'm beginning to wonder if this would have crossed your mind on a clear day after you have been up for awhile.
Follow the money and it ends up going to the French speaking people, the ones that supposedly lost the war for who rules Canada. With them getting the 'cream' (or bulk of the money) by looking at the numbers. Be interesting to see just how they squander the 'gift'. #x what the US gifts to Israel and none of it has to be spent on self defense or civilian infrastructure. Clearly explains why the French have the global reputation that they do.
I'm beginning to wonder if this would have crossed your mind on a clear day after you have been up for awhile.
Why do you always set yourself up to be shut down? What part of you should be examined today other than the attack mode in strong in you. Sort of sets the level of the damage I can do with it when it comes back on you. I'll bet there is a longer list rather than just a few near and dear topics that are triggers.
Re: Alberta and its oil royalty addiction
Doesn't Alberta already have manufacturing industry?
Doesn't Alberta already have manufacturing industry?
Re: Alberta and its oil royalty addiction
Which can add auto delinquency as well, apparently.
Auto loan delinquency rates spike in Alberta - Calgary - CBC News
Which can add auto delinquency as well, apparently.
Auto loan delinquency rates spike in Alberta - Calgary - CBC News
Equalization panel aims to find fairness for Alberta
Wildrose looks to be earning their stripes for the next election.
Equalization panel aims to find fairness for Alberta
Alberta's contribution to equalization payments has come under fire during the economic downturn, and now the Wildrose Party wants a team of experts to come up with a way to fix it.
A panel of economists from Alberta, Ontario and Nova Scotia will analyze the equalization program and submit a report to the Alberta Legislature by Oct. 15.
"These are Albertans hard earned dollars and we have to suffer here in Alberta as a result of what's provided to the rest of Canada," said Opposition leader Brian Jean.
Equalization was initially set up to ensure that Canadians are offered the same standard of living regardless of where they live.
Alberta's contributions to the program have exceeded the amounts transferred back since the 1960s, whereas other provinces have received more than they put in.
On average, over the past 10 years, Alberta pays between $15 billion to 20 billion a year in equalization payments to Ottawa.
Now Alberta's ability to pay is hampered by an economic recession due to falling oil prices.
But Alberta panelist and economic expert Frank Atkins says looking into equalization right now is not due to the downturn.
"As a matter of fact, it's when Alberta is really booming and really paying into equalization that you can really see the fundamental flaws in the equalization system."
Atkins says the panel is non-partisan, and aims to find a more fair formula for the whole country. They will be asking for public input.
Atkins will be joined by David MacKinnon and Ben Eisen from Ontario, and Marco Navarro-Génie from Nova Scotia.
The current equalization agreement expires in 2019.
Equalization panel aims to find fairness for Alberta - Calgary - CBC News
Wildrose looks to be earning their stripes for the next election.
Equalization panel aims to find fairness for Alberta
Alberta's contribution to equalization payments has come under fire during the economic downturn, and now the Wildrose Party wants a team of experts to come up with a way to fix it.
A panel of economists from Alberta, Ontario and Nova Scotia will analyze the equalization program and submit a report to the Alberta Legislature by Oct. 15.
"These are Albertans hard earned dollars and we have to suffer here in Alberta as a result of what's provided to the rest of Canada," said Opposition leader Brian Jean.
Equalization was initially set up to ensure that Canadians are offered the same standard of living regardless of where they live.
Alberta's contributions to the program have exceeded the amounts transferred back since the 1960s, whereas other provinces have received more than they put in.
On average, over the past 10 years, Alberta pays between $15 billion to 20 billion a year in equalization payments to Ottawa.
Now Alberta's ability to pay is hampered by an economic recession due to falling oil prices.
But Alberta panelist and economic expert Frank Atkins says looking into equalization right now is not due to the downturn.
"As a matter of fact, it's when Alberta is really booming and really paying into equalization that you can really see the fundamental flaws in the equalization system."
Atkins says the panel is non-partisan, and aims to find a more fair formula for the whole country. They will be asking for public input.
Atkins will be joined by David MacKinnon and Ben Eisen from Ontario, and Marco Navarro-Génie from Nova Scotia.
The current equalization agreement expires in 2019.
Equalization panel aims to find fairness for Alberta - Calgary - CBC News
Re: Alberta and its oil royalty addiction
Kinda like ON over the past decade and a half all wrapped up in 18 months?
Kinda like ON over the past decade and a half all wrapped up in 18 months?